diff --git a/config/esp32/components/chip/Kconfig b/config/esp32/components/chip/Kconfig
index fdcdf9e43fb66f..d86215bc57ce9d 100644
--- a/config/esp32/components/chip/Kconfig
+++ b/config/esp32/components/chip/Kconfig
@@ -227,7 +227,7 @@ menu "CHIP Device Layer"
             default 25
             help
                 The maximum number of events that can be held in the CHIP Platform event queue.
-        
+
         config ENABLE_EXTENDED_DISCOVERY
             bool "Enable Extended discovery Support"
             default n
@@ -474,7 +474,7 @@ menu "CHIP Device Layer"
         config USE_BLE_ONLY_FOR_COMMISSIONING
 	    bool "Use BLE only for commissioning"
 	    default y
-	    help 
+	    help
             Disable this flag if BLE is used for any other purpose than commissioning.
             When enabled, it deinitialized the BLE on successful commissioning, and on
             bootup do not initialize the BLE if device is already provisioned with Wi-Fi/Thread credentials.
@@ -657,6 +657,13 @@ menu "CHIP Device Layer"
                 Details like Supported calendar types, supported locales, and fixed labels will be read from factory
                 partition.
 
+        config ENABLE_ESP32_LOCATIONCAPABILITY
+            depends on ENABLE_ESP32_FACTORY_DATA_PROVIDER
+            bool "Enable ESP32 Device LocationCapability "
+            default n
+            help
+                Enable ESP32 Device LocationCapability
+
     endmenu
 
 
@@ -849,7 +856,7 @@ menu "CHIP Device Layer"
             default "nvs"
             help
                 Label of the partition to store key-values in the "chip-counters" namespace.
-        
+
         config CHIP_KVS_NAMESPACE_PARTITION_LABEL
             string "chip-kvs namespace partition label"
             default "nvs"
diff --git a/src/include/platform/internal/GenericConfigurationManagerImpl.ipp b/src/include/platform/internal/GenericConfigurationManagerImpl.ipp
index ac6bd6906611f0..ee996282edab68 100644
--- a/src/include/platform/internal/GenericConfigurationManagerImpl.ipp
+++ b/src/include/platform/internal/GenericConfigurationManagerImpl.ipp
@@ -423,7 +423,22 @@ void GenericConfigurationManagerImpl<ImplClass>::NotifyOfAdvertisementStart()
 template <class ConfigClass>
 CHIP_ERROR GenericConfigurationManagerImpl<ConfigClass>::GetRegulatoryLocation(uint8_t & location)
 {
-    return GetLocationCapability(location);
+    uint32_t value;
+    if (CHIP_NO_ERROR != ReadConfigValue(ConfigClass::kConfigKey_RegulatoryLocation, value))
+    {
+        ReturnErrorOnFailure(GetLocationCapability(location));
+
+        if (CHIP_NO_ERROR != StoreRegulatoryLocation(location))
+        {
+            ChipLogError(DeviceLayer, "Failed to store RegulatoryLocation");
+        }
+    }
+    else
+    {
+        location = static_cast<uint8_t>(value);
+    }
+
+    return CHIP_NO_ERROR;
 }
 
 template <class ConfigClass>
diff --git a/src/platform/ESP32/ConfigurationManagerImpl.cpp b/src/platform/ESP32/ConfigurationManagerImpl.cpp
index 5a6f548d055820..88005bda31a6d4 100644
--- a/src/platform/ESP32/ConfigurationManagerImpl.cpp
+++ b/src/platform/ESP32/ConfigurationManagerImpl.cpp
@@ -201,6 +201,25 @@ CHIP_ERROR ConfigurationManagerImpl::GetSoftwareVersion(uint32_t & softwareVer)
     return CHIP_NO_ERROR;
 }
 
+CHIP_ERROR ConfigurationManagerImpl::GetLocationCapability(uint8_t & location)
+{
+#if CONFIG_ENABLE_ESP32_LOCATIONCAPABILITY
+    uint32_t value = 0;
+    CHIP_ERROR err = ReadConfigValue(ESP32Config::kConfigKey_LocationCapability, value);
+
+    if (err == CHIP_NO_ERROR)
+    {
+        VerifyOrReturnError(value <= UINT8_MAX, CHIP_ERROR_INVALID_INTEGER_VALUE);
+        location = static_cast<uint8_t>(value);
+    }
+
+    return err;
+#else
+    location = static_cast<uint8_t>(chip::app::Clusters::GeneralCommissioning::RegulatoryLocationType::kIndoor);
+    return CHIP_NO_ERROR;
+#endif
+}
+
 CHIP_ERROR ConfigurationManagerImpl::GetPrimaryWiFiMACAddress(uint8_t * buf)
 {
 #if CHIP_DEVICE_CONFIG_ENABLE_WIFI
diff --git a/src/platform/ESP32/ConfigurationManagerImpl.h b/src/platform/ESP32/ConfigurationManagerImpl.h
index d7aacbb1809925..7d86ebc8e51ca4 100644
--- a/src/platform/ESP32/ConfigurationManagerImpl.h
+++ b/src/platform/ESP32/ConfigurationManagerImpl.h
@@ -55,6 +55,7 @@ class ConfigurationManagerImpl : public Internal::GenericConfigurationManagerImp
     CHIP_ERROR StoreTotalOperationalHours(uint32_t totalOperationalHours) override;
     CHIP_ERROR GetSoftwareVersionString(char * buf, size_t bufSize);
     CHIP_ERROR GetSoftwareVersion(uint32_t & softwareVer) override;
+    CHIP_ERROR GetLocationCapability(uint8_t & location) override;
     static ConfigurationManagerImpl & GetDefaultInstance();
 
 private:
diff --git a/src/platform/ESP32/ESP32Config.cpp b/src/platform/ESP32/ESP32Config.cpp
index 8f57055cb27e5f..c700b35bb87012 100644
--- a/src/platform/ESP32/ESP32Config.cpp
+++ b/src/platform/ESP32/ESP32Config.cpp
@@ -77,6 +77,7 @@ const ESP32Config::Key ESP32Config::kConfigKey_ProductURL            = { kConfig
 const ESP32Config::Key ESP32Config::kConfigKey_SupportedCalTypes     = { kConfigNamespace_ChipFactory, "cal-types" };
 const ESP32Config::Key ESP32Config::kConfigKey_SupportedLocaleSize   = { kConfigNamespace_ChipFactory, "locale-sz" };
 const ESP32Config::Key ESP32Config::kConfigKey_RotatingDevIdUniqueId = { kConfigNamespace_ChipFactory, "rd-id-uid" };
+const ESP32Config::Key ESP32Config::kConfigKey_LocationCapability    = { kConfigNamespace_ChipFactory, "loc-capability" };
 
 // Keys stored in the chip-config namespace
 const ESP32Config::Key ESP32Config::kConfigKey_ServiceConfig      = { kConfigNamespace_ChipConfig, "service-config" };
diff --git a/src/platform/ESP32/ESP32Config.h b/src/platform/ESP32/ESP32Config.h
index f884af85c3da46..6a008dbb795cf7 100644
--- a/src/platform/ESP32/ESP32Config.h
+++ b/src/platform/ESP32/ESP32Config.h
@@ -79,6 +79,7 @@ class ESP32Config
     static const Key kConfigKey_SupportedCalTypes;
     static const Key kConfigKey_SupportedLocaleSize;
     static const Key kConfigKey_RotatingDevIdUniqueId;
+    static const Key kConfigKey_LocationCapability;
 
     // CHIP Config keys
     static const Key kConfigKey_ServiceConfig;